We are watching GIS tommorrow and QQQ update!

I am going to be watching GIS very closely. If the QQQ bounces back somewhat tomorrow fighting the drop, hopefully it will drag GIS up with it. I am waiting to see if GIS will climb back up about a dollar before I turn around and buy a put on it in expectation for its earnings report that I feel will be lackluster next week due to analysts expectations. Also look during the late morning hours (Chicago Time) for a possible option midday bounce pick.
And now for a look at whats going on with the QQQ..here is a chart after today's (Tues) action:

You can see that there is a big white candle. What this means is that the price plunged down and found some pretty big resistance and the price shot back up to the top of the candle at close. Its the first break of the dam. But is this the beginning of the slide down correction? For that answer, lets once again turn to the foundation of the situtation, the weekly chart for the QQQ:

Interesting. Seeing that the candle I circled above has a tail on the bottom of it, and that this candle is not at the peak of its wave climb, but on the middle of the wave peak, signifies that there could still be some upward climbing/chop for another week or two before the big fall.

My option: The cubes are not going to go quietly into the correction. There is going to be some chop for the next week or so until there is a sizable drop. It is possible that we could see a 97/98 price.

More Tomorrow,
Mark